Eight Reasons Why Your Home Insurance Costs Are Surging
- RetirementGuy
- Feb 6
- 1 min read
It's no secret that home insurance costs are rising, in large part due to increased claims from floods or other natural disasters, inflation and elevated home prices. Home insurance rates are up 37.8% cumulatively since 2019, according to LendingTree. Insurance costs are also increasing due to industry consolidation and disruption as insurance companies exit whole markets.
For example, in 2023, AAA announced it would no longer be renewing policies with home, auto and umbrella bundles in Florida, claiming the growing risk of natural disasters is proving too costly for insurance companies to operate, while Farmers Insurance pulled out of Florida entirely, affecting 100,000 policies.
State Farm also ceased accepting new insurance applications entirely in California, "due to historic increases in construction costs outpacing inflation, rapidly growing catastrophe exposure and a challenging reinsurance market."
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